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Myths Money

Many “sayings” have been developed around money that do more harm than good and make it much harder for people to achieve their financial goals. Just because a belief is popular and widespread, doesn’t mean it’s true. Here are a couple adages about money that should generally be ignored.

Money Is The Root Of All Evil
By its very nature, whether sitting in a bank account, or moving from one hand to another in a transaction, money is one of the most neutral commodities on the planet. Thus, the money itself is not the problem. How an individual chooses to acquire and use money however, may say something about the individual, but the money still remains as neutral as ever. Ultimately, more than the money itself, its our relationship with it that matters most.

High Risk Equals High Returns
When it comes to investing money, there will always be some level of risk involved. Taking big risks however doesn’t always translate into big returns. You can take a big risk and win, or you can take a big risk and lose. Incidentally, most financially successful people try to avoid risk at all cost, not run to it. The bottom line: just because something promises high returns with equivalent risks, does not mean those returns are guaranteed.

You Have To Be Rich To Invest
The idea that one has to be wealthy to invest is just not true. Certainly to start investing requires some money, but by no means does it require anyone to be rich. Most financial institutions today offer investment vehicles that allow anyone with the right desire and discipline to invest small sums that can grow into larger ones over time. In fact, many wealthy people started with small sums, and through patience and savvy, built up their wealth over time. When it comes to building wealth, discipline and self-control matter far more than what we begin with.

You Get What You Pay For
It’s not always the case that we get what we pay for. Price is what you pay, value is what you get - and the two don’t always move in the same direction. Certainly there are items that can justify a higher price, but in most transactions in our day to day life, we can easily substitute something more expensive for something cheaper. Being smart with our money means not paying more for what we can acquire for less.

Myth Busting
By no means is this list exhaustive. It’s important for us to remember that not everything that’s said about money is true or beneficial for our financial well-being. What matters is that we consider how we treat our money to ensure that we can live well beyond payday.